Author:
Boasson Emil,Boasson Vigdis,Cheng Joseph
Abstract
PurposeTo examine the rationale for the investment principles adopted by faith‐based funds from a biblical perspective and to evaluate the performance of faith‐based ethical funds.Design/methodology/approachA multi‐factor Carhart model is applied to examine the risk‐adjusted financial performance and investment strategies of faith‐based ethical funds.FindingsThe statistical results indicate that the faith‐based funds as a group do not under‐perform the market on a risk‐adjusted basis.Practical implicationsThis suggests that investment managers may incorporate moral/ethical components into their investment decisions without unduly shortchanging their clients for whom they have fiduciary duties.Originality/valueThis is one of the very few papers which study faith‐based funds.
Subject
Business, Management and Accounting (miscellaneous),Finance
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